Most Gulf markets in red as US debt talks weigh; Saudi gains | Reuters
Most stock markets in the Gulf ended lower on Thursday amid concerns around the U.S. government's debt-ceiling negotiations, although the Saudi index bucked the trend to close higher.
Dubai's main share index (.DFMGI) dropped 0.3%, with toll-operator Salik Company (SALIK.DU) losing 1.3%.
The Dubai stock market was under pressure again after a strong rebound yesterday. The market could see traders moving to more caution while U.S. issues continue to weigh on expectations, said Farah Mourad, Senior Market Analyst of XTB MENA.
"As a result, the main index could see some price corrections if sentiment deteriorates further."
Saudi Arabia's benchmark index (.TASI) rose 0.6%, extending gains from the previous session, with the country's biggest lender Saudi National Bank (1180.SE) gaining 2.7%.
The kingdom's crude oil exports in March rose to 7.52 million barrels per day (bpd) from 7.455 million bpd in February, the International Energy Forum (IEF) said on Thursday, citing data from the Joint Organisations Data Initiative (JODI).
In Abu Dhabi, the index (.FTFADGI) fell 0.2%.
Oil prices were broadly stable as traders warily watched for signs of progress on talks to raise the U.S. debt ceiling, after surging in the previous session on optimism over U.S. fuel demand.
President Joe Biden and senior U.S. congressional Republican Kevin McCarthy on Wednesday underscored their determination to reach a deal to raise the federal government's $31.4 trillion debt ceiling and avoid an economically catastrophic default.
A debt agreement needs to be reached and passed by both chambers of Congress before the government runs out of money to pay its bills, which could be as soon as June 1.
The Qatari benchmark (.QSI) finished 0.4% lower, a day after advancing 2% following media reports that the Gulf state was planning to boost the stock market to attract foreigners.
Outside the Gulf, Egypt's blue-chip index (.EGX30) declined 0.5%, dragged down by a 2.7% decline in top lender Commercial International Bank (COMI.CA).
Egypt's central bank is forecast to leave its overnight interest rates unchanged on Thursday after inflation eased slightly in April and following a 200 basis-point rate hike in March, a Reuters poll showed on Monday.
Singapore’s Whampoa Group Plans Digital Bank in Bahrain Open to Crypto Clients - Bloomberg
Whampoa Group, a prominent private family office in Singapore, plans to set up a digital bank in Bahrain whose services will include round-the-clock payments and settlement for digital-asset companies.
The goal is to establish the bank by year-end and provide banking services as well as the trading, custody and asset management of digital tokens, according to a statement from Whampoa Group. The firm’s founders include Lee Han Shih, a member of the Lee family that founded Oversea-Chinese Banking Corp. and Amy Lee, the niece of the city-state’s founding prime minister.
A government spokesperson for Bahrain said the nation’s central bank has “granted an in principle approval” to Whampoa Group for the venture, adding the “approval is tentative and a full license will only be granted after all regulatory requirements have been met.”
Many existing lenders are wary of working with digital-asset firms following last year’s market rout and blowups like the FTX exchange. The sector also lost round-the-clock payments rails when crypto friendly lenders Signature Bank and Silvergate Capital Corp. collapsed in this year’s US banking turmoil.
Whampoa Group last year said it intended to raise $50 million for a crypto-related hedge fund and deploy $100 million for a venture-capital fund for the digital-asset sector. Before that, the group was part of a consortium led by ByteDance Ltd. that applied for but didn’t receive a digital-bank license in Singapore.
Jurisdictions globally are seeking to clarify and strengthen the regulation of digital assets. Some like Bahrain, Dubai and Hong Kong are trying to attract crypto-related investment. In contrast, the US has cracked down on the sector.
Most Gulf markets fall on lower oil prices; Saudi gains | Reuters
Most stock markets in the Gulf fell in early trade on Thursday on lower oil price, although the Saudi index bucked the trend to trade higher.
Prices of oil - a key catalyst for the Gulf's financial markets - fell as traders warily watched for signs of progress on talks to raise the U.S. debt ceiling, after surging nearly 3% in the previous session on optimism over U.S. fuel demand.
Dubai's main share index (.DFMGI) fell 0.3%, with blue-chip developer Emaar Properties (EMAR.DU) losing 0.8% and toll operator Salik Company (SALIK.DU) retreating 1%.
In Abu Dhabi, the index (.FTFADGI) declined 0.3%.
The Qatari benchmark (.QSI) dropped 0.3%, a day after advancing 2% following media reports that the Gulf state was planning to boost the stock market to attract foreigners.
Saudi Arabia's benchmark index (.TASI) gained 0.4%, with the country's biggest lender Saudi National Bank (1180.SE) gaining 1.8% and oil giant Saudi Aramco (2222.SE) putting on 0.3%.
Separately, the kingdom's First Milling Co said it intended to proceed with an initial public offering (IPO) and listing of its ordinary shares on the Saudi Exchange.
First Mills plans to announce the price range on May 18, and set a final price for its shares on May 31, it said.
President Joe Biden and top U.S. congressional Republican Kevin McCarthy on Wednesday underscored their determination to reach a deal soon to raise the federal government's $31.4 trillion debt ceiling and avoid an economically catastrophic default.
Abu Dhabi Investment Authority Taps Manulife Exec for US Real Estate - Bloomberg
The Abu Dhabi Investment Authority hired one of Manulife Financial Corp.’s top executives to lead its Americas real estate unit as the $1 trillion sovereign wealth fund seeks to expand its property portfolio in the US.
Pritesh Patel, previously chief investment officer at Manulife’s Americas Real Estate division, will join the Abu Dhabi fund this summer, replacing Gerald Fang who left in 2021, according to a person familiar with the matter, who asked not to be named as the information isn’t public. Patel previously held several senior roles at GE Capital Real Estate, according to his LinkedIn profile.
An ADIA spokesman confirmed Patel’s appointment.
Abu Dhabi’s biggest sovereign wealth fund has been pushing deeper into the US and real estate investments, tapping into opportunities brought on by the pandemic. The fund — with about $993 billion assets, according to data provider Global SWF — has raised its target allocation range for North America to between 45% and 60%. In its 2021 annual review released in October, it said activity levels for real estate investments would remain high in 2022 and beyond, adding that the outlook for real estate was “attractive.”
